Broker fee for finding a tenant for a commercial office space
Hi there,
I'm just curious what the normal broker fee is for finding a tenant for a commercial space, specifically an office space. The broker that I worked with to find the commercial property charges "6% of the total gross aggregate rental for the first five-year lease term and 3% rental
for the term past five years". Is this a reasonable fee?
For reference the property should lease for about $5000/month = $60,000/year and $300,000 for that 5 year term. This means $18,000 to the broker upon execution of the 5 year lease.
My bigger concern is: If -------------, Inc., a cooperating broker working through Broker, the Owner, or anyone else exposes said property to a prospective Tenant during the listing period, and this prospect leases said property within six (6) months of the ending date of said listing, then Norris & Stevens, Inc. shall be due its stipulated fee"
Is this typical? I plan on working all my own contacts to also try and find a tenant and I sure don't want to do all the work and then still pay the Broker $18K! I have a lawyer who can draft the lease which would likely only cost me about $1000. I'm just not confident I can find someone on my own so I want to keep a good line of communication with the broker as well.
Any thoughts and insight would be greatly appreciated!
Michelle